Can I keep my car?

[mom1]

I am about to file bankruptcy because I am in way over my head. I have a car payment that is 3 months behind and bill collectors call everyday for loans that are behind. I want to know if I file do I get to keep my car and if so, do I keep making the current payment or do I make one payment for all debts owed? I have tried to refinance my car and other loans but my credit is in poor condition. Please advise because my car is on the verge of being repoed. Many Thanks.

[StaciMM]

If you file a ch. 13 (where you repay a part of your debts) then you should be able to include the past due car payments in the plan, and would need to keep making regular car payments once you file. So-if you file on 12/1 and normally make your payment on the 7th, you would need to make a full payment on 12/7 but the prior payments, fees, etc. would be included in your plan.

If you file ch. 7 (where you don't repay a part and your debts are generally discharged) then you would need to catch up on your car, or make some arrangements with the lien holder. That isn't too likely, by the way.

Regardless, filing starts an automatic stay which means they can't repo without getting the courts permission.

[mom1]

Can I keep my car?

If I file 13 can the courts make it to where my car payment is lower. I am paying $753 now and it is killing me. I can't get anyone to refinance.

[StaciMM]

How long have you been in it? There is no cram down if you've had it less than 2 1/2 years. If you've had it longer, you *might* be able to only pay what its worth and have the rest treated like unsecured debt. (Not really sure how it works under the new laws.)

Have you considered giving it up? I don't know that you'd be able to get that payment approved in a BK. How does the rest of your income/expenses/debt measure up?

[Minnymouth]

If you are 3 months behind on your car payments and your payments are $753 a month........ sounds like you need to find a less expensive vehicle to drive.........

Chances of you keeping your vehicle in bankruptcy are very slim considering the payment, and past due payments.....

Sounds like you need to go ahead, file bankruptcy, let the vehicle go back and try to replace it on a redemption plan.
That large of a car payment MAYBE EXACTLY what is choking you to death right now.

We all love our vehicles, hate to part with them, but sometimes it becomes a necessity.

Check out www.722redempton.com.

Let us know if we can help,

Good luck,

Minny